Kospi Opens Lower at 6,746 on Middle East Risks; Chip Shares Mixed

Samsung Electronics Rises Early While SK Hynix Falls

South Korea’s Kospi opened lower near the 6,700 level early on July 14 as escalating military tensions between the U.S. and Iran, a jump in oil prices and overnight weakness in U.S. semiconductor shares weighed on investor sentiment.

As of 9:04 a.m., the Kospi was down 60.04 points, or 0.88%, at 6,746.89.

U.S. stocks closed lower overnight as geopolitical risks in the Middle East came into focus. Crude prices surged after U.S. President Donald Trump said he would resume a maritime blockade against Iran and impose transit fees on vessels passing through the Strait of Hormuz. The Dow Jones Industrial Average fell 0.26%, the S&P 500 dropped 0.79% and the Nasdaq slid 1.55%. The Philadelphia Semiconductor Index tumbled 4.78%.

On the main board, foreign and institutional investors were net buyers of 853.1 billion won and 756 billion won, respectively. Retail investors were net sellers of 1.593 trillion won.

Among large-cap stocks, trading was mixed. Samsung Electronics rose 0.59%, KB Financial Group gained 0.78% and Shinhan Financial Group advanced 2.03%. SK Hynix fell 1.63%, SK Square lost 2.07%, Samsung Electro-Mechanics dropped 2.17%, Hyundai Motor slid 4.84%, LG Energy Solution declined 1.67%, Samsung Biologics fell 2.43%, Samsung Life Insurance sank 5.98% and Hanwha Aerospace retreated 3.42%.

The Kosdaq also traded lower. At the same time, the index was down 9.13 points, or 1.14%, at 790.23.

On the Kosdaq, foreign and institutional investors were net sellers of 21 billion won and 20 billion won, respectively. Retail investors were net buyers of 900 million won.

Among the Kosdaq’s largest companies, Alteogen fell 8.06%, Ecopro BM dropped 2.17%, Ecopro lost 3.23%, Rainbow Robotics declined 3.61%, Kolon TissueGene slid 4.70%, Wonik IPS fell 2.48% and LigaChem Biosciences dropped 5.21%. By contrast, Jusung Engineering rose 2.52%, PSK gained 5.85%, LEENO Industrial advanced 1.52%, EO Technics climbed 2.50%, Simmtech added 1.11% and TES rose 2.90%.

In Seoul’s foreign-exchange market, the won traded at 1,498.5 per dollar, down 1 won from the previous daytime session close.

Kim Yeon-ji, Hankyung.com reporter kongzi@hankyung.com